16800/16500 levels to watch for. Time to be selective.

Index seems to be seeing good amount of support around the 16800-16850 which is 50% retracement of the current rally. Technically one can expect 61.8% of the current rally which comes to 16500-16550.

So we need to watchout for bottoming signals in this range to pull out some bounce back trades. European Indices are coming closer to supports/ Dow Jones on the other hand has some more to go.

Over all we could continue to see stock specific moves in coming days so one needs to be selective and take trades with strict stoplosses. Leverage should be avoided as of now but closer to 16500 or lower one could look towards speculative longs which we generally used at 15500 previously.

Stocks to watchout for :

Ranbaxy may move contrarian to the index downtrend it seems. Buy with a stoploss of 448-450 for short term tgt 475.

Educomp sell below 658 tgt 635. stoploss 670

Torrent Power is showing a nice chart pattern. Sustained move above 325 can take the stock to 350 in quick time.

Weird Small Cap Idea :

HFCL Infotel – There is a lot of buzz on Videocon to have taken over the company and the stock could do 15-20 rs in next 1-2 mths. High risk high return stock so do ur own research.

Sequent Scientic – old name P I Drugs. - It is rumoured to be the next big bet in CRAMS pharma cos. High risk investors can do their research. Punters tip the stock to touch 200.